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Exploring the influence of resource environments on absorptive capacity development: The case of emerging market firms

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  • Bilgili, Tsvetomira V.
  • Kedia, Ben L.
  • Bilgili, Hansin

Abstract

Research recognizes that emerging market firms (EMFs) have relatively underdeveloped absorptive capacity. Yet, scarce attention has been paid to the conditions that constrain or facilitate EMFs’ absorptive capacity development. In this article, we explore how differences in home country resource environments influence EMFs’ absorptive capacity. We suggest that home country institutions and factor markets influence EMFs’ choice among three learning strategies: duplicative imitation, creative imitation, and innovation. Building on the organizational learning perspective, we then explore how learning strategies of EMFs’ from different emerging economies influence their preferences with respect to sources of new knowledge, and consequently the implications of these strategic choices for their absorptive capacity.

Suggested Citation

  • Bilgili, Tsvetomira V. & Kedia, Ben L. & Bilgili, Hansin, 2016. "Exploring the influence of resource environments on absorptive capacity development: The case of emerging market firms," Journal of World Business, Elsevier, vol. 51(5), pages 700-712.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:5:p:700-712
    DOI: 10.1016/j.jwb.2016.07.008
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